Xbox boss Don Mattrick says when compared to other modern products, $500 is not a "ridiculous" price point.

Microsoft's Xbox boss, Don Mattrick, has spoken out to defend the Xbox One's $500 price point, saying the company is in fact over-delivering value with the next-generation system.

"It's a lower number than some of the analysts had forecasted," Mattrick said on Bloomberg TV. "We're over-delivering value against other choices I think consumers can get. Any modern product these days you look at it [and] $499 isn't a ridiculous price point. We're delivering thousands of dollars of value to people, so I think they're going to love it when they use it."

Competitor Sony will offer its PlayStation 4 at $400 this holiday season, but Mattrick believes consumers will choose the Xbox One for its suite of exclusive services and applications like an improved Xbox Live, as well as Skype, Twitch TV, SmartGlass, and Kinect.

"We're really making the living room your center of fun for your family," Mattrick said.

Also in the interview, Mattrick refers to the new Xbox One Halo title as Halo 5. This game was announced during Microsoft's E3 briefing last week only as "Halo Xbox One."

Again with this living room crap. What gamer spends his hard earned money on a 500$ games console not including games and other stuff, so that his little 5 year old can play his games all day in the comfort of the "Living Room"

I tell you now if i was to have my PS3 in the living room my parents would get pissed at me for spending too much time on it and whine that im hogging up the TV and make me play it in my bedroom.

Gamers just want a console that can just play games on. That's it. They are tying to make the Xbone into a Wii, Problem is, the wii is a family console and most households have that device in their living rooms due to the games. And that's why it worked! us othe gamers had the PS3/Xbox.

The Wii will continue to sell for years to come for the familily household that wants a family console. The Wii-U is The gamer version pretty much.

I refuse to buy the kinnect . If it means not buying a new xbox. Yeah i won't . give me an otpion to not get the kinnect and we'll talk. but i still wouldn't cuz the ps4 has better hardware and it still is 100$ more than the ps4. And i can live without halo 5 microsoft. lol....

1 A camera and microphone bundle called Kinect which makes good games suck and pretty much ruins most of the experiences I may be looking for in a game console. For proof just look at the games that have come out on kinect, and have been absolutely terrible - most of them. The franchise titles that were ruined - most notably Steel Battalion and the Star Wars kinect titles - the only thing it does well is dancing titles, and honestly, who is really interested in those?

2 Television options I will Never Use because I do not watch TV and have not for the last 18 years.

3 Internet options for stuff I don't use or have an account for like facebook, twitter, and all that other nonsense.

4 A complete Lack of one of the few things actually useful in multiplayer gaming - a basic headset, and lets not forget you force me to buy a proprietary version straight from you, instead of just plugging in my own.

5 And what about options that I might actually want as a gamer? Like say the ability to buy and install my own hard drive to expand the system in a way that might actually benefit me? Oh yes, you will have proprietary HD's available that are probably more than double the cost I would spend on my own.

6 an utterly useless smartglass connection - why would I want to balance a tablet on my lap and have to put down my controller, during a game, to pick up the tablet to do something I should have been able to accomplish with a simple button press on the traditional controller? Not to mention I don't even own a smartphone or a tablet, so once again, this is utterly useless.

Where is the value again? I think MS has lost it. This is not a device aimed at gamers or gaming. It is some sort of frankenstien monster - overcharging for a pile of 'features' that I don't need and will never use. No thanks.

Let me get this straight Don, so your tellin' us to give you money for some crap we'll never use, to prevent us from doing what we always wanted to do with a "VIDEO GAMING CONSOLE" in the first place??..

Besides...with that kind of money, I can buy a PS4 AND a Videogame!!...

I'm a Sony fan boy through and through but i also hope MS does well because I'm going to own both anyways and I want them to both push the boundaries in gaming. With that being said, MS can come off being so arrogant, I really hope they can justify all these claims that have been made.

Sorry. I have no need to wave my hand and yell at my TV to do shit. I also do not need the extra HDMI inputs when I have a receiver for my surround sound and other devices. Taking out a $10 headset and giving me a $100 camera is not worth it.

'Mattrick believes consumers will choose the Xbox One for its suite of exclusive services and applications like an improved Xbox Live, as well as Skype, Twitch TV, SmartGlass, and Kinect.' ... No, I choose games.

Microsoft is truly a giant troll. The specs in a PS4 and Xbox One are so similar hardware wise. How is Sony able to charge $100 less? When you compare $400 to $500 for almost the same hardware, you're not "over-delivering value". You're failing at basic math.

Also, the eye is not $60 unless you're buying it from Microsoft and they overcharge you 20%

If I want to make my living room the center of attention, I can already just turn on my tv....and connect my PC tower to my tv if I needed.

$500 isnt a ridiculous price point, but it's $100 more expensive than your competitor. What we've seen in the past is that video game consumers tend to look more closely at price than value. You'd think they would have learned from Sony's fiasco with the ps3. Sometimes I wonder how supposedly smart people can miss the mark.

[Microsoft Executive #1] "Guys how can we con - I mean convince these saps to fork over $500 for our Xbox when Sony's machine is whole $100 less?"

[Microsoft Executive #2] "Just add the word value in there somewhere. If it works for McDonalds it'll work for us."

[Microsoft Executive #3] "HahaHa value... Pfft, As long as these suckers don't figure out we added a whole bunch of useless features to hike the price up! I'm fine with whatever gets these suckers to put more money in our bank accounts!"

LMAO if only I could get a youtube video of the Microsoft big wigs in there suits at a conference and the guy in charge is like "OMG don't they get it We're OVER- Delivering value." (and his voice cracks on the OVEr) Lol these statements sound like they came from kids who got beat up in school.

its all right saying its not over price for what you are getting but here in the uk we are getting half of a machine I know its based in America where they are going to get all theses things with new machine and like we allus uk people do is wait till we get are half machine into a full machine hence sky sports live tv lol

Leave it to some tone-deaf MS geek to come up with some totally
out-of-touch corporate-speak phrase like "over-delivering value", whatever the fuck that
means. lol

The bottom line is the One is priced $100 higher than the PS4 and it
remains to be seen if gamers see actual value in the Kinect 2.0 or not. I
for one, will never buy a One until MS offers a SKU without a Kinect
at $349. Period.

MS did the right and smart thing by shit-canning
the horrible anti-consumer DRM (for now) because they knew they were going
to get destroyed in sales if they didn't. Reported pre-orders at all
major retailers like Gamestop/Amazon/BestBuy was as much as 5:1 in favor
of PS4 prior to the reversal. So, MS back-pedaled because they had to. But, they still have a
big
problem: the PS4 is significantly more powerful (fact) and $100 cheaper.
And, in case anyone isn't paying attention to the news lately, US
citizens don't take kindly to being spied on by corporations or the
government. Regardless of MS's intentions, it's mind-bogglingly stupid
to *require* a camera be purchased with every One given the current
political climate and people's fears about being surveiled by "Big
Brother". It just proves how tone-deaf MS continues to be.

Remember
your history MS: Sony "over-delivered value" with PS3...and tried
to force gamers to pay more for features (Blue-Ray) they didn't want to
have to pay for at the time. PS3's sales were terrible until Phil
Harrison (ring any bells?) left and Sony offered a re-design and a price
drop. And, keep in mind, this was in 2006 when the economy was still
booming. In 2013 we are currently still in a global recession and people
have LESS money to spend now than back then.

$500 is too much when
your competitor is $400 for a more powerful console. That same $500 gets
you a game and an extra controller with every PS4 purchase.
"Over-delivering" doesn't matter.

Please support wired Xbox 360 controllers on the Xbox One, you won't really loose anything like that, since most people only has the wireless. But people with stearingwheels and fightsticks would get something out of it, and all that is bought from 3rd part companys anyway.

It would REALLY make a big difference for people with "wheels or sticks" since those types of controllers are really expensive and for both of them there's also a lot of people making their own mods to them. So it would save people a lot of money and time, and it would help you guys sell more games because people don't have to use an extra 200-400$ on controllers they basically already have.

Hope you read this and really think about it.

Thanks a lot for bringing back Killer Instinct to us, and thanks for listening to the community about the DRM!

Wow, I love how people bash a price point. Ya, I think $499 is a little nuts but everyone can thank Apple and Samsung for the pricing. Apple over-prices the shit outta their products and droves of people still buy them, Hell MS even had to get in the game with the Surface because of low pc sales. If Tablets and Smartphones weren't so popular I think the prices of consoles and games would be a little cheaper not much though. There isn't a lot of product out there that cost less than the $399 and $499 at retail price. IMO I think what MS is giving you for $499 isn't bad. I mean really the xbone is far superior to any tablet and is cheaper than most store bought pc's plus your getting the sensor, a controller and the "I think" the best online service available. With PS4 you get the console and a controller for $399 plus you have to buy the Eye which is $60 or $70, which people will at some point buy because every control has the move built into it and youll need the eye to even use it. In reality both systems are very close to each other in price and features

Only thing here is that not every-one wants kinetic and they are must pushing it to us and saying we are selling this system with ok price cause it has whole lot of things here. They should have just take kinetic away and sold 400 to people and they would have sold xbox one like no other.

Sony Rule kids on the internet, Xbox people just buy systems. You'll see half of these people don't even have money to buy either system. Pre-sale sony is winning but gap is closing and will once system drop fact PS4 coming out after Christmas will hurt

"We're delivering thousands of dollars of value to people"....... really, since when does a bypass for using your set top cable box cost thousands of dollars? the new Xbox still needs you to have a cable subscriber with a paid cable subscription to even use that feature, not even to mention you HAVE to be a paid Xbox live subscriber also. there is nothing in the new Xbox i want, what skype?? GTFO! how about the "cloud" lmao.... really? even ps4 has "the cloud" its called Gaikai and atleast they said next year youll be able to stream your content you bought this gen on next gen. now how about those games...... another lol, even the games they showed during E3 was a bunch of BS, 70% of the games they showed off are not console exclusives, they will be on both PS4 and PC. the best part is all the smoke these MS executives are blowing up our @sses will be for nothing and swept under the rug by game journalist next year after MS drops the prices dramatically and hushes up the negative reviews and feedback.